There is no exception to the fact that this Covid pandemic has hit hard on a lot of businesses. But, the year 2020 has seen a boom in the Customer Success space, as a lot of SaaS businesses are now identifying Customer Success as a strong business imperative. The companies have realized the importance of customer success in an overall increase in revenue and profitability. So keeping in mind the top trends, here is a strategy for you to do Customer Success Budgeting.
Read this blog to understand the Paradigm shift in Customer Success technology with AI.
Read: Ari Hoffman’s Customer Success Strategy for an economic downturn.
Before planning the budget, it’s important we identify the top trends in Customer Success.->
Top Customer Success trends
Acquisition-driven growth is dead, retention-driven growth is the future
- The Acquisition driven SaaS growth is dead and this era is all about retention-led growth. Whether you are a B2B SaaS or a B2C SaaS, the business’s growth and survival will be dependent on customer retention.
There was only 20% of the businesses that luckily had a tailwind due to COVID, were able to push the requisition. But the majority of the businesses are fundamentally leading and thriving only and only through retention. So this is going to be a key differentiator for Businesses in 2021 – organizations that are able to retain customers and those that are not able to do that.
Check out the SaaS customer retention best practices to maximize renewals
Customer Success Had the biggest Impact in 2021
- Customer Success was never more evident than it was in 2020. Businesses that invested in customer success, who have opted for customer success practice were not just able to retain customers but actually were able to reduce their churn rate as well.
Read More: Top Customer success trends
Customer Success Budgeting for 2021
While we all know the basics of budgeting, people cost consultants cost technology cost, etc by holding back to that Excel sheet, trying to put that perfect number which is going to get the 130% Plus. Here, I would like to put a twist on the current methodology and do it the other way around. So below are a few of my inputs on budgeting.
Identifying Goals for Customer Success
- Successful onboarding
- Logo renewals and MRR renewals
- MRR growth and upsell
- Customer Retention
If your CEO has asked you to budget your customer success org for 2021, I would suggest taking into consideration the customer success goals. This will assist you to lead the team planning by including the headcount along with setting up the right technology for Customer Success.
My Suggestion –
I would definitely suggest you have that honest conversation right upfront with your CEO, discussing your company’s goal with Customer Success, about your KPI’s. Don’t just start with people and budget but be more clear as to what your commitment for 2021 is. “Higher the commitment, higher is going to be the budget”
P.S. – The main image has been taken from pexels.com